If you want to apply for online unsecured debt consolidation loans, then you will find this article very informative. Specifically, we will discuss here the advantages, disadvantages, eligibility and the time when this type of loan should be taken. After reading this article, you should be able to take an informative decision for your debt consolidation needs through an unsecured loan.What are the advantages of this type of loan?The main advantage of such a loan is that you don’t need to have any collateral to be eligible for this loan. It means that even if you don’t have any home, car or any other asset, you are eligible for an unsecured loan. Second major advantage is that the approvals of such loans are much faster than any secured loan, as no verification of your assets is required.Now, what are the disadvantages of such a loan?The major disadvantage of such a loan is the high interest rates. Yes, due to the nature of such a loan where bank don’t have any collateral, interest rates are higher than a secured loan. As banks are covering risks through higher return. Due to this reason, it is advisable that you should opt of an unsecured loan only when you are under debts which have high interest rates such as credit card debts. Other than credit card debts, if you have many loans which are being paid monthly and are in totality costing you high interest rates, then also you should opt for such a loan without any delay.Now, what about eligibility?As I have already mentioned, you don’t need any collateral to get this loan. However, you need to have a clean credit record with financial institutions. This is one of the major requirements to get a good deal on an unsecured loan. Even if you don’t have a clean record, you can search for such a loan as many institutions offer an unsecured loan to a person with bad credit history, but in that case you will end up paying much higher interest rates than a person with good credit history.In conclusion, all I can say is that you should apply for an unsecured debt consolidation loan to consolidate all your loans which have high interest rates. However, I must caution you about your overall spending pattern. If you don’t change your spending habits, then you may end up paying this unsecured loan as well as new credit card debts.
